The Psychology of Overpaying Anxiety
Why does "getting a bad deal" hurt 10x more than "missing a good deal"? It is biological.
Humans are wired for Loss Aversion. We feel the pain of losing $10 twice as intensely as the joy of finding $10.
The "Sucker" Fear
When you buy silver, you are terrified of being the "Sucker." You worry that you paid $30 and your friend paid $29. This fear drives you to waste hours hunting for pennies.
Frame Shift: You Are Buying Insurance
When you buy car insurance, do you brag about finding the absolutely cheapest, rock-bottom policy? No. You worry that if it's too cheap, it won't pay out. Treat silver the same way. If a deal is too good to be true ($2 under spot on eBay), it's probably fake. Paying a fair market price is the cost of sleeping well.
Mental Models
We share mental frameworks from top investors. Learn how to crush Loss Aversion and invest rationally.